Tate & Lyle said its performance was “disappointing” in the first half of the year as sales were hit by a slowdown in demand led by North America.
Group revenue fell 3% to £1.0bn in the six months to 30 September, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 6% to £215m.
It is therefore expecting both revenue and EBITDA to decline by low-single-digit percentage points compared to last year.
“Performance in the first six months of the year has been disappointing, impacted by softer than expected market demand, notably in North America,” said CEO Nick Hampton.
“As a result, we are accelerating a series of targeted actions to drive top-line growth and improve performance.”
This strategy inclues four key actions such as targeted investment in key growth areas, and raising its productivity savings target by $50m to $200m by March 2028.
The integration of ingredients maker CP Kelco into the FTSE 250 company is also delivering cost synergies ahead of plan, leading Tate & Lyle to target $50m in savings by the end of the 2027 fiscal year.
“Over the last six months we have made strong progress driving the benefits of the CP Kelco combination and setting the business up for future growth,” Hampton said.
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